Your Wealth Guide to Types of Digital Assets and How to Manage Them

Your Wealth Guide to Types of Digital Assets and How to Manage Them

Cryptocurrency has gone mainstream. At present, there are more than 300 million cryptocurrency users. Someone posts about Bitcoin every three seconds on social media. 

This is in no small part due to the fact that there’s an incredible amount of money to be made using blockchain technology. In 2021, the crypto market topped $2 trillion for the first time!

Like most markets, cryptocurrency has tons of specialized terminology. Today, we’re going to be looking at the different types of digital assets so you can learn how to integrate them into your investment strategy. 

What Are Digital Assets?

The digital economy has undergone an intense evolution since Bitcoin was first invented in 2009. In 2022, cryptocurrency is just one of many potential investments that make use of blockchain technology. 

A digital asset is anything whose provenance is tracked via blockchain technology, which is also known as distributed ledger technology (DLT). Cryptocurrencies are the best-known digital asset, but there are many others, as well. Some are quickly becoming as popular as cryptocurrencies themselves. 

Types Of Digital Assets

Blockchain technology is an important aspect of the digital ecosystem for re-establishing trust and transparency in the industries you’re investing in. It’s also a way to add value in the endless ocean of the internet, where everything is available all of the time. 

Cryptocurrencies and Stablecoins

When most people hear about the blockchain, cryptocurrencies like Bitcoin and Ethereum spring to mind. This is largely due to the fact that mainstream cryptocurrencies generate quite a bit more press than more obscure applications like utility tokens. 

Cryptocurrencies are the best-known and most popular blockchain application. If we were to make an analogy based on traditional economics, cryptocurrencies would be closest to stocks. Their prices are constantly fluctuating based on an ever-changing market. 

Stablecoins, on the other hand, are more like bonds in this metaphor. They’re made to be more consistent than cryptocurrencies. They’re directly connected to centralized economies, known as fiat currencies. 

Cryptocurrency digital assets have become so integrated that they’re nearly mainstream. You can even exchange your crypto assets for fiat capital at some locations via a Bitcoin ATM like the ones from Byte Federal

Non-Fungible Tokens

The other most common form of digital assets in 2022 are non-fungible tokens (NFTs). NFTs take advantage of the blockchain’s ability to track and verify as a way to create exclusivity even for digital artifacts. 

NFT art is by far the most common application for NFTs. But that’s just the beginning. NFTs can be used to trade exclusive digital creations (like digital fashion). They can even be used to trade real estate!

Considering how virtual our lives have become, we’re only going to see more digital assets. If you’re looking for investment opportunities for the future, it’s a good idea to get comfortable with digital assets now! 

Want to Know More About Making Money Online?

The internet is the most exciting, promising investment opportunity in the history of mankind. Never before have so many ways to make money been made available to so many people. 

Are you looking to learn about types of digital assets or how to optimize an eCommerce storefront via SEO? You’ll find what you’re looking for on our pages. Browse the rest of our site today to find your next investment opportunity!

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Your Wealth Guide to Types of Digital Assets and How to Manage Them

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